How End-of-Service Benefit Is Calculated
End-of-service benefit depends on the employee's length of service and basic salary, with the ratio calculated differing for the first years of service compared to later years.
The reason for ending service also affects the amount owed, since rights differ between an employee's resignation and termination by the employer.
Regulatory Basis
This calculator draws on the general basis for end-of-service benefit under Saudi Labor Law.
Limits of Using This Calculator
This calculator's result is an estimate for planning, not a final figure to rely on in a dispute or formal settlement. For cases needing full legal accuracy, we recommend confirming the calculation directly with us.
Who Benefits From This Calculator
Employers planning to estimate the cost of terminating an employee before making the decision.
Employees wanting to estimate their expected entitlements at the end of their contract.
We notice some employers use the calculator's result as a final figure when negotiating an end-of-service settlement, without accounting for specific details in the employee's contract that might change the actual calculation, like a special bonus clause or an agreed deduction. We always recommend confirming the final figure with us before any formal settlement with an employee.
Related Services
For a full review of the employee's contract, this connects with our employment contracts service.
For end-of-service disputes needing escalation, this connects with our labor and employment service.
Common Questions
Does this calculator give an official precise figure?
No, it's a planning estimation tool, and we recommend confirming the precise figure with us for cases needing formal reliance.
Does the calculation differ based on reason for ending service?
Yes, the ratio owed differs between resignation and employer-initiated termination.